Tremendous League Gaming Reviews Second Quarter 2019 Outcomes

0
0
Super League Gaming Reports Second Quarter 2019 Results


SANTA MONICA, Calif., Aug. 14, 2019 (GLOBE NEWSWIRE) — Tremendous League Gaming (Tremendous League or the Firm) (NASDAQ: SLGG), a number one content material and neighborhood platform offering aggressive and social gameplay experiences throughout sport titles, talent ranges and venues, reported latest operational developments and monetary outcomes for the second quarter ended June 30, 2019.   

Latest Operational Developments

  • Partnered with Tencent America to supply aggressive experiences to PUBG Cellular gamers in native communities nationwide and create new PUBG Cellular content material programming throughout social and digital platforms.
  • Formally introduced its community of digital channels that present avid gamers with a number of types of esports content material furthering Tremendous League’s mission to rejoice the novice gamer and esports life-style.
  • Appointed Samir Ahmed, most lately head of client expertise for Amazon’s IMDb enterprise, to the function of Tremendous League’s chief expertise officer.
  • Acquired Framerate, one of many fastest-growing impartial social video networks in esports, including hundreds of thousands of views to Tremendous League’s platform.

Administration Commentary
“The momentum Tremendous League demonstrated within the first quarter of 2019 continued into the second quarter, as we made important strides in our aim to create and disseminate high-quality gaming content material to a rising viewers of gamers, spectators and aggressive gaming fanatics across the nation,” stated Ann Hand, CEO of Tremendous League. “Our first half revenues had been pretty per final 12 months’s degree regardless of our strategic choice to cut back the variety of pay-to-play occasions.

“We’re on monitor to fulfill or exceed our full-year targets for the entire key efficiency indicators we outlined firstly of the 12 months.  As of immediately, we have now achieved our full-year goal for variety of sport titles on our platform and have exceeded our goal for each registered customers with over 600,000, and mixture viewership with over 12 million views throughout our digital community, up from roughly a million throughout 2018.

“The truth that novice online game gamers can seize headlines around the globe and earn hundreds of thousands of {dollars} by successful an esports match demonstrates how a lot curiosity there’s in esports amongst gamers, sponsors, followers, and the rising legion of firms trying to capitalize on this rising phenomenon.

“Tremendous League is solidifying its place on the epicenter of esports, connecting followers, sport publishers, retail venue companions, sponsors, skilled groups and social media giants. Our strategic focus continues to be on rising the variety of ways in which followers of aggressive gaming can get pleasure from bodily and digital experiences, permitting us to broaden our attain and construct audiences for our social content material and elite novice esports broadcasts which is able to in the end drive income and shareholder worth.”

Second Quarter 2019 Monetary Outcomes
Revenues within the second quarter of 2019 had been $223,000 in comparison with $358,000 within the comparable prior 12 months quarter. The lower was primarily pushed by the timing of name and media sponsorship actions in the course of the interval, partially offset by platform-as-a-service revenues totaling $91,000 within the second quarter of 2019.  

Value of income improved to $113,000 in comparison with $182,000 within the comparable prior 12 months quarter as a result of operational efficiencies leading to decrease direct prices for Tremendous League’s bodily and digital experiences in the course of the second quarter of 2019.

Complete working bills within the second quarter of 2019 elevated to $5.6 million in comparison with $3.Eight million within the comparable prior 12 months quarter. The rise was primarily as a result of a $1.Zero million enhance in non-cash inventory compensation expense in reference to the vesting of sure performance-based equity-awards upon achievement of sure operational efficiency targets in the course of the second quarter of 2019, and will increase in headcount, expertise platform, insurance coverage and different company bills.

On a GAAP-basis, which incorporates important non-cash costs, web loss within the second quarter of 2019 was $5.5 million or $(0.65) per share, in comparison with a web lack of $4.Zero million or $(0.86) per share within the comparable prior 12 months quarter. Non-cash costs within the second quarter of 2019 included $1.Eight million in stock-based compensation bills.

Proforma web loss for the second quarter of 2019 was $3.7 million in comparison with $2.Eight million within the comparable prior 12 months quarter. As famous above, the change was primarily as a result of a rise in headcount, expertise platform and company insurance coverage bills.

At June 30, 2019, the Firm’s money place totaled $16.2 million in comparison with $2.Eight million at December 31, 2018. The numerous enhance was as a result of web capital raised in the course of the Firm’s IPO. All principal and curiosity associated to the Firm’s convertible notes excellent, totaling $13.Eight million, was mechanically transformed to fairness upon completion of the IPO. As such, there isn’t a debt excellent as of June 30, 2019. Money paid and the truthful worth of frequent inventory issued, in reference to the acquisition of Framerate, totaled $1.5 million and $1.Zero million, respectively. In reference to the accounting for the acquisition of Framerate, the Firm recorded intangible property acquired and goodwill totaling $2.Eight million as of June 30, 2019.

Convention Name
The Firm will maintain a convention name immediately at 5:00 p.m. Japanese time to debate its second quarter 2019 outcomes and supply a enterprise replace.

Date: Wednesday, August 14, 2019
Time: 5:00 p.m. Japanese time (2:00 p.m. Pacific time)
Toll-free dial-in quantity: (866) 987-6716
Worldwide dial-in quantity: (630) 652-5945
Convention ID: 7034869

Please name the convention phone quantity 5-10 minutes previous to the beginning time. An operator will register your title and group. You probably have any issue connecting with the convention name, please contact Gateway Investor Relations at (949) 574-3860.

The convention name might be broadcast dwell and accessible for replay right here and by way of the investor relations part of the Firm’s web site at www.SuperLeague.com.

A replay of the convention name might be accessible after 8:00 p.m. Japanese time on the identical day by August 21, 2019.

Toll-free replay quantity: (855) 859-2056
Worldwide replay quantity: (404) 537-3406
Replay ID: 7034869

About Tremendous League Gaming
Tremendous League Gaming, Inc. (NasdaqCM: SLGG) is a number one esports neighborhood and content material platform for aggressive, on a regular basis avid gamers, followers and mates of all ages and talent ranges. With a concentrate on optimistic and inclusive gameplay, Tremendous League permits gamers to expertise their sport like the professionals whereas additionally creating sportsmanship, communication and team-building abilities. Powered by a proprietary expertise platform, Tremendous League operates bodily and digital experiences in partnership with publishers of top-tier video games. Native film theatres, PC cafes, restaurant and leisure venues are reworked into esports arenas the place avid gamers compete, socialize, spectate and rejoice the novice esports life-style. Tremendous League’s platform provides distinctive novice esports experiences that not solely ratchet up the competitors for avid avid gamers, but in addition entice audiences with elite novice broadcasts that rework bodily venues in addition to gas SuperLeagueTV’s Twitch and YouTube channels.  

Ahead-Trying Statements
Secure Harbor Assertion underneath the Personal Securities Litigation Reform Act of 1995. Statements on this press launch that aren’t strictly historic are “forward-looking” statements inside the that means of Part 27A of the Securities Act of 1933, as amended and Part 21E of the Securities Change Act of 1934, as amended. These statements contain substantial dangers, uncertainties and assumptions that might trigger precise outcomes to vary materially from these expressed or implied by such statements. Ahead-looking statements on this communication embody, amongst different issues, statements about our doable or assumed enterprise methods, potential progress alternatives, new merchandise and potential market alternatives. Dangers and uncertainties embody, amongst different issues, our capability to implement our plans, forecasts and different expectations with respect our enterprise; our capability to comprehend the anticipated advantages of occasions that occurred in the course of the quarter ended June 30, 2019, together with the likelihood that the anticipated advantages won’t be realized or won’t be realized inside the anticipated time interval; unknown liabilities; attracting new clients and sustaining and increasing our current buyer base; our capability to scale and replace our platform to answer clients’ wants and fast technological change; elevated competitors on our market and our capability to compete successfully, and enlargement of our operations and elevated adoption of our platform internationally. Further dangers and uncertainties that might have an effect on our monetary outcomes are included within the part titled “Danger Components” and “Administration’s Dialogue and Evaluation of Monetary Situation and Outcomes of Operations” in our prospectus dated February 25, 2019, our Quarterly Report on Kind 10-Q for the quarter ended June 30, 2019 and different filings that we make on occasion with the Securities and Change Fee which can be found on the SEC’s web site at www.sec.gov. As well as, any forward-looking statements contained on this communication are primarily based on assumptions that we imagine to be affordable as of this date. Besides as required by legislation, we assume no obligation to replace these forward-looking statements, or to replace the explanations if precise outcomes differ materially from these anticipated within the forward-looking statements.

Data About Non-GAAP Monetary Measures
As used herein, “GAAP” refers to accounting rules typically accepted in the US of America. To complement our condensed monetary statements included in our Quarterly Report on Kind 10-Q for the interval ended June 30, 2019, which monetary statements had been ready and offered in accordance with GAAP, this earnings launch contains proforma web loss, a monetary measure that’s thought of a non-GAAP monetary measure as outlined in Rule 101 of Regulation G promulgated by the Securities and Change Fee. Usually, a non-GAAP monetary measure is a numerical measure of an organization’s historic or future efficiency, monetary place, or money flows that both excludes or contains quantities that aren’t usually excluded or included in probably the most straight comparable measure calculated and offered in accordance with GAAP. The presentation of this non-GAAP monetary data will not be supposed to be thought of in isolation or as an alternative choice to, or superior to, the monetary data ready and offered in accordance with GAAP.

We use proforma web loss, proforma earnings per share (EPS) and different non-GAAP monetary measures for inside monetary and operational decision-making functions and to guage period-to-period comparisons of the efficiency and outcomes of operations of our enterprise. Our administration believes these non-GAAP monetary measures present significant supplemental data concerning the efficiency of our enterprise by excluding non-cash inventory compensation costs, non-cash curiosity costs on convertible debt, and non-cash pay as you go in-kind promoting costs that might not be indicative of our recurring core enterprise working outcomes. These non-GAAP monetary measures additionally facilitate administration’s inside planning and comparisons to our historic efficiency and liquidity. We imagine these non-GAAP monetary measures are helpful to buyers as they permit for larger transparency with respect to key metrics utilized by administration in its monetary and operational choice making and are utilized by our institutional buyers and the analyst neighborhood to assist them analyze the efficiency and operational outcomes of our core enterprise.

Proforma Internet Loss and EPS. We outline Proforma Internet Loss as web loss calculated in accordance with GAAP, however excluding non-cash inventory compensation costs, non-cash curiosity costs on convertible debt (together with accrued periodic curiosity, periodic or accelerated amortization of debt low cost costs and costs associated to convertible debt associated useful conversion options), and non-cash pay as you go in-kind promoting costs. Proforma EPS is outlined as Proforma web revenue divided by the weighted common excellent shares, on a totally diluted foundation, calculated in accordance with GAAP, for the respective reporting interval.

As a result of inherent volatility in inventory costs, using estimates and assumptions in reference to the valuation and expensing of share-based awards and the number of award varieties that firms can situation underneath FASB ASC Subject 718, administration believes that offering a non-GAAP monetary measure that excludes non-cash inventory compensation permits buyers to make significant comparisons between our recurring core enterprise working outcomes and people of different firms interval to interval, in addition to offering our administration with a important device for monetary and operational choice making and for evaluating our personal period-to-period recurring core enterprise working outcomes.

Non-cash curiosity costs associated to convertible debt excellent, if any, together with accrued periodic curiosity, periodic or accelerated amortization of debt low cost costs and costs associated to convertible debt associated useful conversion options, primarily displays the attribution of worth to frequent inventory buy warrants and the useful conversion characteristic embedded within the convertible debt devices, and the expensing of those quantities on a straight-line foundation over the time period of the convertible debt as further curiosity price associated to the debt. These non-cash quantities are mirrored in different expense and are usually not bills related to our core enterprise operations. Administration believes that offering a non-GAAP monetary measure that excludes non-cash curiosity costs permits buyers to make significant comparisons between our recurring core enterprise working outcomes and people of different firms interval to interval, in addition to offering our administration with a important device for monetary and operational choice making and for evaluating our personal period-to-period recurring core enterprise working outcomes.

There are a number of limitations associated to using proforma web loss and EPS versus web loss EPS calculated in accordance with GAAP. For instance, non-GAAP web loss excludes the affect of great non-cash inventory compensation and debt associated curiosity costs which are or could also be recurring, and which will or will proceed to be recurring for the foreseeable future. As well as, non-cash inventory compensation is a important element of our worker compensation and retention packages and the price related to frequent inventory buy warrants and useful conversion options embedded in convertible debt excellent is a important element of the price of debt financings. Administration compensates for these limitations by offering particular data concerning the GAAP quantities excluded from non-GAAP web loss and evaluating non-GAAP web loss at the side of web loss and EPS calculated in accordance with GAAP.

The accompanying desk beneath titled “Reconciliation of GAAP to Non-GAAP Monetary Data” offers a reconciliation of the non-GAAP monetary measures offered to probably the most straight comparable monetary measures ready in accordance with GAAP.

Investor Relations:
Sean McGowan and Cody Slach
Gateway Investor Relations
(949) 574-3860
[email protected]

Media Contact:
Ann Kaiser
(212) 918-2029
[email protected]

SUPER LEAGUE GAMING, INC.
CONDENSED BALANCE SHEETS
(Unaudited)

 Steadiness At Steadiness At
 June 30, 2019 December 31, 2018
Belongings   
Money $  16,180,000  $  2,774,000 
Accounts receivable   470,000     488,000 
Pay as you go bills and different present property   1,238,000     487,000 
Complete present property   17,888,000     3,749,000 
Property and Gear, web   272,000     531,000 
Intangible and Different Belongings, web    1,369,000     707,000 
Goodwill   2,565,000     –  
Complete property$  22,094,000   $   4,987,000  
    
Liabilities   
Accounts payable and accrued bills$  1,120,000  $  813,000 
Deferred Income   65,000     45,000 
Convertible Debt, web   –      10,923,000 
Complete liabilities   1,185,000      11,781,000  
    
Stockholders’ Fairness   
Widespread Inventory   18,000     14,000 
Further paid-in capital   97,598,000     48,325,000 
Amassed deficit   (76,707,000)    (55,133,000)
Complete stockholders’ fairness   20,909,000      (6,794,000)
Complete liabilities and stockholders’ fairness$  22,094,000   $   4,987,000  
    

SUPER LEAGUE GAMING, INC.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)

 Three Months Ended Six Months Ended
 June 30, June 30,
  2019   2018   2019   2018 
        
REVENUE$  223,000  $  358,000  $  472,000  $  487,000 
        
COST OF REVENUE   (113,000)    (182,000)    (187,000)    (305,000)
        
GROSS PROFIT   110,000     176,000     285,000     182,000 
        
OPERATING EXPENSES       
Promoting, advertising and promoting   271,000     173,000     472,000     669,000 
Expertise and platform growth   682,000     558,000     1,392,000     1,115,000 
Normal and administrative    4,662,000     3,047,000     10,062,000     6,137,000 
Complete working bills   5,615,000     3,778,000     11,926,000     7,921,000 
        
NET OPERATING LOSS   (5,505,000)    (3,602,000)    (11,641,000)    (7,739,000)
        
OTHER INCOME (EXPENSE)   –      (361,000)    (9,933,000)    (395,000)
        
NET LOSS$  (5,505,000) $  (3,963,000) $  (21,574,000) $  (8,134,000)
        
Internet loss attributable to frequent stockholders – fundamental and diluted       
Fundamental and diluted loss per frequent share$  (0.65) $  (0.86) $  (3.00) $  (1.77)
Weighted-average variety of shares excellent, fundamental and diluted   8,413,090     4,604,104     7,199,829     4,603,741 
        
        
SUPER LEAGUE GAMING, INC.
Reconciliation of GAAP to Non-GAAP Monetary Data
(Unaudited)
        
 Three Months Ended Six Months Ended
 June 30, June 30,
  2019   2018   2019   2018 
        
GAAP web loss$  (5,505,000) $  (3,963,000) $  (21,574,000) $  (8,134,000)
Add again:       
Non-cash inventory compensation   1,799,000     827,000     4,529,000     1,688,000 
Non-cash debt associated curiosity costs   –      363,000     9,937,000     397,000 
Non-cash In-kind promoting   –      –      –      333,000 
Proforma web loss$  (3,706,000) $  (2,773,000) $  (7,108,000) $  (5,716,000)
        
Professional forma non-GAAP web earnings (loss) per frequent share — diluted$  (0.44) $  (0.60) $  (0.99) $  (1.24)
Non-GAAP weighted-average shares — diluted   8,413,090     4,604,104     7,199,829     4,603,741 
        

SUPER LEAGUE GAMING, INC.
CONDENSED STATEMENT OF CASH FLOWS
(Unaudited)

 Six Months Ended
 June 30, 2019 June 30, 2018
    
Working Actions   
Internet Revenue$  (21,574,000) $  (8,134,000)
Changes to reconcile Internet Revenue to web money offered by operations:   
Depreciation and amortization   485,000     536,000 
Inventory-based compensation   4,529,000     1,688,000 
Amortization of low cost on convertible notes    2,684,000     298,000 
Helpful conversion characteristic   7,067,000     –  
In-kind contribution of companies –      295,000 
Adjustments in property and liabilities   
Accounts Receivable   33,000     (289,000)
Pay as you go Bills and Different Belongings   (598,000)    109,000 
Accounts payable and accrued bills   284,000     (96,000)
Deferred Income   20,000     –  
Accrued curiosity on convertible notes   187,000     99,000 
Internet Money Supplied by Working Actions   (6,883,000)    (5,493,000)
    
Investing Actions   
Money paid for acquisition of Framerate   (1,491,000)    –  
Buy of property and tools   (33,000)    (135,000)
Capitalization of software program growth prices   (560,000)    (80,000)
Acquisition of different intangibles   (105,000)    (27,000)
Internet Money Supplied by Investing Actions   (2,189,000)    (242,000)
    
Financing Actions   
Proceeds from issuance of frequent Inventory, web   22,458,000     –  
Proceeds from convertible notes, web   –      4,812,000 
Proceeds from warrant train   20,000     –  
Internet Money Supplied by Financing Actions   22,478,000      4,812,000  
    
Internet Money Enhance for the Interval   13,406,000     (924,000)
Money at Starting of the Interval   2,774,000     1,709,000 
Money at Finish of the Interval$  16,180,000   $   785,000  
    



Supply hyperlink

This site uses Akismet to reduce spam. Learn how your comment data is processed.